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SCB X Plc (SCB), formerly known as Siam Commercial Bank, saw its shares gain over 3 per cent on Monday after it signaled a possibility of selling its asset management unit for up to 54 billion baht.
The bank announced that it is in “early stages” of discussions related to the sale of SCB Asset Management Co., Ltd. as one of its strategic moves in response to reports on the deal that could be worth from US$1 to 1.5 billion. However, it further clarified that those reports are “unfounded.”
This morning SCB led the rise in the banking sector, which is due to report quarterly results shortly. The stock rose 3.29 per cent from its prior closing to 102 baht.
SCB shares had dropped to 98.50 baht last week, its lowest level since the market listed SCB X in April, as equity markets were facing fears of global recession amid growing inflation.
However, the bank noted in a statement that “there is no certainty or assurance that any such transactions may occur.”
“Given the strategic importance of asset management, the company regularly evaluates strategic options, proposals, and opportunities which may involve consultation with external advisors.’
SCB has been in talks with financial advisers on the sale of its asset management unit as other industry players have shown preliminary interest, according to a Bloomberg report.
Founded in 1992, SCB Asset Management manages mutual funds, provident funds, and private funds, with 1.6 trillion baht net asset value under management as of the end of May.
Analysts at KGI Securities say that if the deal goes through, it will supply SCB with cash flow and extra profits, as well as open the door for further strategies.
After trading hours on Friday, SCB also announced the delay of the planned acquisition of Bitkub, Thailand’s leading digital asset exchange. “The matter is in the process of due diligence and discussion with the regulatory bodies,” SCB said.
The extension for the acquisition comes amid the fall of cryptocurrencies as investors seek refuge from trading in riskier assets.
According to KGI analysts, the holdup on the acquisition process might create positive sentiment on SCB shares. “During the highly turbulent crypto market, there may be a chance to negotiate Bitkub’s trading price.”